Head to Head Analysis: Amergent Hospitality Group (OTCMKTS:AMHG) and RCI Hospitality (NASDAQ:RICK)

Amergent Hospitality Group (OTCMKTS:AMHG) and RCI Hospitality (NASDAQ:RICK) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares Amergent Hospitality Group and RCI Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amergent Hospitality Group	N/A	N/A	N/A
RCI Hospitality	-1.48%	-1.74%	-0.72%

Earnings and Valuation

This table compares Amergent Hospitality Group and RCI Hospitality”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amergent Hospitality Group	N/A	N/A	N/A	N/A	N/A
RCI Hospitality	$284.42 million	0.83	$10.81 million	($0.41)	-75.46

RCI Hospitality has higher revenue and earnings than Amergent Hospitality Group.

Analyst Ratings

This is a breakdown of recent ratings for Amergent Hospitality Group and RCI Hospitality, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amergent Hospitality Group	0	0	0	0	0.00
RCI Hospitality	1	0	0	0	1.00

Given Amergent Hospitality Group’s higher probable upside, analysts plainly believe Amergent Hospitality Group is more favorable than RCI Hospitality.

Insider and Institutional Ownership

53.8% of RCI Hospitality shares are held by institutional investors. 11.4% of RCI Hospitality shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

About Amergent Hospitality Group

Amergent Hospitality Group, Inc. owns, operates, and franchises fast casual dining concepts in the United States and Europe. The company operates company-owned restaurants; and restaurants owned and operated by franchisees under the American Burger Company, The Burger Joint, and Little Big Burger names in the United States. It operates gaming machines in Portland, Oregon under license from the Oregon Lottery Commission. Amergent Hospitality Group, Inc. was incorporated in 2020 and is headquartered in Charlotte, North Carolina.

About RCI Hospitality

RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. It operates in Nightclubs, Bombshells, and Media Group segments. The company’s wholly-owned subsidiaries own and/or operates upscale adult nightclubs serving primarily businessmen and professionals under the Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club. Wholly-owned subsidiaries also operate restaurants and sports bars under the Bombshells Restaurant & Bar brand; and dance clubs under the Studio 80 brand. As of February 11, 2019, the company operated 46 units, including 39 nightclub units and 7 Bombshell units. In addition, it owns two national industry trade publications serving the adult nightclubs industry and the adult retail products industry; a national industry convention and tradeshow; and two national industry award shows, as well as approximately a dozen industry and social media Websites. The company founded in 1983 as Rick's Cabaret International, Inc., changed its name to RCI Hospitality Holdings, Inc. in August 2014, and is based in Houston, Texas.